Posted On: August 25, 2011
The Swiss franc slipped in value against the U.S. dollar but market analysts and observers underscored their confidence in the strength of the franc, which is considered a safe-haven asset, according to published reports.
The dollar's increase is attributable to the $5 billion investment in Bank of America by Warren Buffett, chairman of Berkshire Hathaway, which injected confidence in the U.S.' economic system in general and the nation's largest lending bank in particular, according to
Speculation has not abated regarding additional intervention with the Swiss franc. Following its reduced gains against the European Union's shared currency, conjecture mounted about Swiss officials and the Swiss National Bank intending to intervene once again.
"I think basically the Swiss Franc is the new gold, it's as simple as that. I think where investors basically want to put their money is in ... Swiss franc deposits in this type of environment where you can't really trust any other asset," Swiss research head Jon Cox of Kepler Capital Markets told
Buffett's commitment comes at an opportune time. Through Wednesday, shares at Bank of America had lost 50 percent of their value following conjecture about the bank needing to raise capital market funds.
Category: Industry News
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